Disney reported revenue of $8.4 billion for its theme park unit for the three months that ended in June.
While that was a 2 percent increase from the previous year, it was lower than expected, in a sign that stubborn inflation and high interest rates were weighing on Americans’ ability to sail on Disney cruise ships and visit parks like Disney World.
Disney, in its earnings report on Wednesday, blamed a “moderation of consumer demand.”Robert Iger, Disney’s chief executive, has called its theme parks “a key growth engine.” And for the past decade, the company has relied on the parks to help offset losses in other divisions, as it has spent billions on its streaming services while revenue in its cable television business has declined.
Disney’s streaming service turned a profit in the quarter for the first time, but since April 1, the company’s stock has fallen around 29 percent.
“The lower-income consumer is feeling a bit of stress, and the higher-income consumer is traveling internationally a bit more,” Hugh F. Johnston, Disney’s chief financial officer, said Wednesday on a conference call with analysts.
Persons:
Robert Iger, Hugh F, Johnston
Organizations:
Disney
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